The payroll solution that provides all you need for Auto Enrolment.
Scam artists painting a profitable picture
The payroll solution that provides all you need for Auto Enrolment.
The introduction of automatic enrolment has allowed more employees to save for their retirement. However, these days the number of scam artists is also increasing. Scammers are more sophisticated and more professional than ever before.
Many speak the language and are very financially knowledgeable when it comes to discussing your payroll information and pension options. Even for the most astute of us, it can be difficult to tell a scammer from a genuine financial professional. Scammers design attractive offers to convince you to transfer your pension pot or release funds to them. Typically in life, if it sounds too good to be true, it usually is.
Scammers are targeting victims through a number of various tactics including:
- Contacting you out of the blue with no prior meeting or call scheduled.
- Making promises of high or guaranteed returns.
- Offering free pension reviews and evaluations.
- Guaranteeing you access to your pension before age 55 with no penalties.
- Applying pressure to act quickly saying it’s a limited offer.
The Pensions Regulator has prepared a useful guide to follow to protect you and your clients from pension scams.
Reject unexpected calls: If someone contacts you out of the blue about your pension, chances are it’s a scam. Any company calling about your pension that you’ve never dealt with before could be scam artists.
Check the details of the person contacting you: Check the Financial Services Register (www.register.fca.org.uk) to make sure that the person you are talking to is FCA-authorised or indeed the person or firm they claim to be. Some scammers are pretending to be FCA firms.
Get impartial advice: It is recommended to seek impartial advice from The Pensions Advisory Service who offer free independent and impartial information and guidance. For those over 50, Pension Wise can discuss your options. Make sure to use a financial adviser that is regulated by the FCA.
Take your time: Your pension is one of the most important investments you will make in your life and it is important that you avoid making any rash decisions. Many scammers do their best to apply pressure to make a rushed decision. Take the time to properly investigate any offer and always check the T&C’s legitimacy of the offer.
If you do fall victim to a scam you are unlikely to get your money back if things go wrong. When advising your clients about their payroll and automatic enrolment needs, make sure to inform them of these pension scam artists. Many victims have had their pension stolen or invested in high-risk investments where they lose the majority of their pension.
Written by Karen Bennett | BrightPay Payroll Software
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